Crypto-based funds saw a significant influx of $3.17 billion in new investments, despite the tumultuous market conditions resulting from trade tensions between the US and China, as reported by CoinShares in their weekly report.
The announcement on Oct. 10 by President Trump regarding potential tariff increases in response to China’s restrictions on rare-earth exports triggered a widespread sell-off across various asset classes. This led to a decrease in crypto prices and withdrawals of approximately $159 million from digital-asset investment products on that day.
The market correction also prompted around $20 billion in liquidations from leveraged crypto traders, resulting in a 7% reduction in total assets under management (AUM) for crypto investments, down to $242 billion.
However, the same announcement fueled a surge in trading activity, with daily volumes for crypto ETPs reaching a record high of $15.3 billion during Friday’s trading sessions. This surge contributed to a total weekly trading volume of $53 billion across these products, double the average volume for the year.
These figures reflect a growing trend of investors turning to regulated crypto funds as a hedge against short-term market volatility, with total inflows surpassing $48.7 billion in 2025.
Bitcoin Leads the Way
Bitcoin continued to attract institutional investments, receiving $2.67 billion in new capital last week, bringing its year-to-date total to $30.2 billion.
Despite modest flows of $390,000 on Oct. 10, Bitcoin experienced its highest daily trading volume ever recorded at $10.4 billion on the same day.
In contrast, Ethereum faced challenges, with $338 million in inflows following $172 million in withdrawals during the market sell-off. CoinShares pointed out that investors perceive Ethereum as more vulnerable to short-term market fluctuations.
Despite the challenges, ETH has seen total flows of around $14 billion for the year, with assets under management around $36 billion.
Other major digital assets like Solana and XRP attracted $93.3 million and $61.6 million, respectively, but investor interest in these assets seems to have cooled despite anticipation of ETF approvals.
This trend suggests a consolidation of capital around Bitcoin as investor appetite for risk diminishes.
